That does not look normal, it looks like he might have a hair ring there, but hard to tell. Does it retract or stays out like that? If it wont go back in I would get him to the vet and have them help.
He doesn't look like he has a hair ring . That is why we checked him. He wasn't peeing as much so we checked him for the hair ring. It went right back in. But he peed this morning.